The Resources Authority (MRA) will not consult unions and constituted bodies on the revised water and electricity tariffs, insisting the mechanism used to verify them had been issued for public consultation earlier this year.

The authority confirmed it will conclude its review of the tariffs before January 1, when they are meant to come into force.

Entities and individuals had the opportunity to comment on the review mechanism when it was issued for public consultation on February 17, a spokesman for the authority said when asked whether unions and employer organisations would be consulted. "The mechanism, which has been in the public domain for a number of months, reflects the outcome of this consultation process," she said.

However, social partners claimed the MRA was obliged to consult consumers before making recommendations.

Chamber for Small and Medium Enterprises - GRTU director general Vince Farrugia insisted the Electricity Directive obliged the regulator to safeguard the interests of small businesses.

"The authority is saying it has already done this when it consulted on the principles but we are insisting it also consults us on the workings," Mr Farrugia said, pointing out that the Prime Minister had also promised an economic impact assessment.

"What kind of authority does not consult users, more so on something that has a major impact on the economy which is still in recession?" he said.

The MRA spokesman said the authority was currently in the "final stages of concluding the review and verification exercise", which would be ready by the new year.

The authority has instructed Enemalta and the Water Services Corporation (WSC) not to make the proposed new tariffs public, after receiving them at the beginning of November.

Last Friday, the Prime Minister urged the authority to conclude its work as soon as possible for the sake of stability.

The authority's recommendations, the spokesman added, would be passed on to the Resources Ministry under whose wing the MRA falls.

The Infrastructure Ministry has justified the January 1 increase by citing higher operating costs, primarily the rise in the price of oil, which represents 62 per cent of Enemalta's expenses.

The total increase in costs for Enemalta and the WSC to be borne by consumers is expected to be about €85.6 million. Of this, €74.9 million is attributable to higher oil prices and €10.7 million to investments in the new sewage treatment plants, the smart meter system and the new power station at Delimara.

The higher bill for oil includes a €21.5 million shortfall the corporation is expected to register at the end of 2009 because income from tariffs was not sufficient to fully cover oil costs.

ksansone@timesofmalta.com

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